Companies in Korea will, in principle, no longer be allowed to list subsidiaries created by splitting off businesses from already listed parent companies, in accordance with new rules aimed at curbing a longstanding practice that has drawn criticism for diluting shareholder value, government officials said Monday. The restriction applies to subsidiaries formed when a listed company spins off part of its business while retaining ownership. Such listings will be granted only in exceptional cases after passing stricter reviews, with companies required to demonstrate that minority shareholders are adequately protected. The guidelines, unveiled by the Financial Services Commission (FSC) and the Korea Exchange, impose five new obligations on the boards of parent companies seeking dual listings, alongside tougher listing review standards. According to the FSC, the practice has become widespread in Korea despite concerns that it hurts minority shareholders by lowering the value of the parent company’s shares. Investors have long argued that once a valuable business is listed separately, part